Analysis. In most major European markets, including the UK and Germany, the best wind projects are costcompetitive with new coal and gas plants when accounting for the carbon price. It’s actually possible now to combine growth with a green agenda to tackle climate change, chief executive officer of Vestas Wind Systems, Anders Runevad, said in an interview.
The cost of delivering this looks more manageable now, said UK energy and climate change secretary Amber Rudd. There are signs of a retreat from coal and oil. Investors with $2.6 trillion of assets under management have pledged to withhold money from fossil fuels, up from $50 billion a year ago. The oil industry is divided, with European majors in June breaking with their biggest US competitors and supporting efforts to put a cost on carbon pollution.
Last year, renewables contributed almost half of the world’s new power generation capacity, according to the IEA. Mandatory energy efficiency regulations on everything from fridges to industrial boilers now cover more than a quarter of global energy use, the agency says. In the five years through 2014, new investment in clean energy totalled $1.46 trillion, up from $802 billion in the five previous years, according to BNEF.
While investment in renewable energy has boomed, the industry hasn’t been a safe bet in the stock market. Wilder Hill new energy global innovation index of 105 clean energy companies has tumbled 29 per cent since the Copenhagen climate summit while global shares in the MSCI world index appreciated 46 per cent, according to data compiled by Bloomberg.